Implementing the circular economy Stuart Clouth and Dan Wright

Implementing the Circular Economy in the South West

A Case Study

Stuart Clouth, Resource Futures

Dan Wright, Phineas Products

22nd April 2014 |Engine Shed |Bristol

Engine Shed, Bristol | 22nd April 2014

Welcome

Introduction to Resource Futures, and background to the

project and the circular economy

Introduction to Phineas Products

Circular Economy Case Study

Summary and next steps


Who we are

An independent Bristol-based environmental consultancy

30 years’ experience in resource management

Pioneered recycling collections in the 1980s focused on

collecting materials to meet market demand

Led on developing understanding of waste composition in

relation to developing markets

Engagement of industry, public and communities in

developing circular economy thinking

www.resourcefutures.co.uk


Global Material Demand

Source: UNEP


Commodity Prices

Source: McKinsey Consultants


The Circular Economy

Ellen MacArthur Foundation

“an industrial economy that is, by design or intention,

restorative and in which materials flows are of two types,

biological nutrients, designed to reenter the biosphere safely,

and technical nutrients, which are designed to circulate at high

quality without entering the biosphere.”


Source: Ellen MacArthur Foundation

Key facts

We are a family owned business with our HQ in South Bristol

We supply all the major high street retailers including Marks and Spencer, Next

and Walmart / Asda

Our global sales is GBP 5 million or 60+ million units per annum

Our average Product Carbon Footprint is approx. 17,000 tonnes

Our 3 year plan includes a number of programmes to reduce our carbon footprint

which includes:

-Increasing the use of recycled plastic 80% reduction on virgin

-Investment in renewables to supplement power generation

-Investment in further energy efficient machinery

-Implementation of a range of reusable products

Phineas is a truly global

organisation, with facilities

strategically located around the

globe to meet our customers

requirements

Sales Offices in:

• Hong Kong

• United States

• India

• United Kingdom

Manufacturing facilities in:

• China

• India

• United Kingdom

Global Reach

Products

We supply products for hanging any type

of footwear from flip flops to wellington

boots.

Current recycling model is based on

granulation of product after a single use

We manufacture as close to the shoe

factory as is possible to reduce

transportation costs

Approximately 90% of our UK

manufacturing uses recycled materials

Our key challenges for a circular economy

1. Design products which are robust

enough for multiple uses and which

minimise handling time

2. Design a service which is cost

effective for our clients

3. To quantify the commercial and

environmental benefits of a re-use

system


New Designs for a Circular Economy

TSB – New Designs for a Circular Economy

Up to £25,000 funding available

Feasibility Study

Three months

Allocated a project assessor


Life Cycle Thinking

Life Cycle Assessment

A technique to assess environmental impacts associated

with all the life cycle stages of a product's life from-cradle-

to-grave

Life Cycle Costing

A technique to assess the most cost-effective option

among different competing alternatives


Life Cycle Stages


Models

1. Baseline (existing system)

Single use, virgin material produced in China, disposed of

in the UK

2. Closed Loop Recycling

Re-circulated for closed-loop recycling in the UK

3. Reuse

Single use in-store, redistributed to Phineas for reuse


1. Baseline model Single use, virgin material

Raw material processing from virgin polystyrene / polypropylene

Hanger manufacture in China

Distribution of hangers to customers throughout Asia, and then to the UK

Single use in store

Disposed of through landfill, incineration or recycled (open loop)


2. Recycling model Re-circulated for recycling in the UK

Material sourcing from 90% recycled polystyrene / polypropylene

Single use in store

Hangers captured in store, distributed to Phineas UK & recycled

Hanger manufacture UK

Distribution within UK


3. Reuse Single use in-store, redistributed to Phineas for reuse

Distribution within UK

Material sourcing to

cover

shortfall/growth

Hanger manufacture

UK

Single use in store, then

captured for reuse Redistributed to Phineas

Sorted and repacked

Reject waste

(Phineas

recycled)

Reuse cycle


Results - CO2 Emissions per hanger

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

Baseline Recycling Model Reuse Model

Car

bo

n E

mis

sio

ns

(kgC

O2

e p

er h

ange

r)

Raw Material Production Shoe Hanger Manufacture Distribution Use Disposal

80%

42%


Results - Life Cycle Costing

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Baseline Recycling Model Reuse Model

No

rmal

ise

d C

ost

Raw Material Production Shoe Hanger Manufacture Distribution Use Disposal


Sensitivity analysis

Additional Handling Time in store – cost

Number of reuse cycles – cost

Number of reuse cycles – CO2


Additional Handling Time – in store

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0.5 1 1.5 3 5 10

No

mal

ise

d C

ost

per

han

ger

Handling time

Baseline Reuse Model


Number of reuse cycles – cost per hanger

0%

20%

40%

60%

80%

100%

120%

1 2 3 5 10

No

rmal

ise

d C

ost

per

han

ger

Number of cycles



Number of reuse cycles – CO2 per hanger

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

1 2 3 5 10

Car

bo

n E

mis

sio

ns

(kgC

O2

eq

per

han

ger)

Number of cycles



Summary – Resource Futures

Analysis indicating value of both alternatives in de-risking

materials and supply chain dependency

Great example of re-shoring manufacture in the South West

Circular Economy in action for a low cost packaging

product

Provides basis for discussion with retailers on sustainability/

supply chain costs


Summary – Phineas Products

Demonstrates Phineas commitment to sustainability

Innovation & competitive advantage

Longer term supply chain security

Provides model for future Indian and China manufacturer

Quantification as basis for negotiation with clients

Implementing the circular economy Stuart Clouth and Dan Wright

Business

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